PEDEVCO Corp. Reports $25.6 Million Net Loss Despite 360% Revenue Increase in Latest Quarter

PEDEVCO Corp. reported significant financial changes in its latest quarterly filing, revealing a net loss of $25.6 million for the three months ending March 31, 2026, compared to a net income of $0.1 million during the same period in 2025. This shift was primarily attributed to a $31.3 million loss on derivative contracts, which arose from increased commodity prices that exceeded the company's hedge positions. Despite this loss, the company saw a substantial increase in revenue, which rose to $40.2 million, a 360% increase from $8.7 million in the previous year, driven by a significant rise in production volumes following the completion of mergers in October 2025.

The company's operational metrics reflected this growth, with crude oil production increasing to 534,563 barrels, up 421% from the previous year, and natural gas production rising to 636,057 Mcf, a 281% increase. The total production volume reached 728,141 barrels of oil equivalent (Boe), marking a 374% increase year-over-year. However, the average sale prices for natural gas and natural gas liquids decreased, contributing to a slight decline in revenue per unit sold.

Strategically, PEDEVCO completed mergers with North Peak Oil & Gas and Century Oil and Gas in October 2025, which significantly expanded its asset base and production capabilities. The company now operates in key regions including the Denver-Julesberg Basin, Powder River Basin, and Permian Basin, with a focus on optimizing existing assets and pursuing additional acquisitions. The mergers added approximately 432,000 Boe of production sales, which was a key factor in the revenue increase.

Operationally, the company reported total operating expenses of $33.5 million, which included a $1.6 million impairment of oil and gas properties and increased lease operating expenses due to the newly acquired assets. The company also incurred $2.0 million in interest expenses, reflecting its new debt obligations following the mergers. As of March 31, 2026, PEDEVCO's total current liabilities exceeded its current assets, resulting in a working capital deficit of $20.4 million, although this was an improvement from the previous quarter.

Looking ahead, PEDEVCO aims to leverage its expanded asset base to enhance production and cash flow while maintaining financial flexibility. The company plans to allocate between $16 million to $20 million for capital expenditures in 2026, focusing primarily on its D-J Basin assets. Management expressed confidence in the company's ability to meet its financial obligations and continue its growth trajectory, despite the challenges posed by volatile commodity prices and operational costs.